EU Finance Heads Meet to Close Greek Gap
The upcoming aid payment of Greece is what the finance heads of EU are pondering over at present. They aim to strategically stitch the aid payment sometime in the current week as the IMF spat and sputtering economy in euro zone continue to cloud the efforts to minimize the ongoing debt crisis.
The finance heads are scheduled to attend a meeting tomorrow in Brussels. They would be meeting for the second time within the week after the heads agreed to keep the bailout fund of Greece flowing. Apart from the disagreement between IMF and European Union over softening the debt target of Greece, the finance ministers are also likely to restructure the present bailout without actually forcing the taxpayers to shell out more money.
Thomas Costerg, one of the economists at Standard Chartered, London gave an e-mail statement stating that the talks would be very tense and rigorous as all the players from different countries are all set with their respective positions. The statement also mentioned that the debt can of Greece is quite likely to get further kicked in coming times, but few constructive statements are likely to occur.
The meeting, which will host the ministers from the seventeen different Euro zones, underscores skirmishes among Euro Union officials confronting increasing unemployment and slowing economy in the time when they continue to fight the 3 year old crisis. The talks of the finance heads will be preceding the Nov. 22-23 EU summit, which is aimed to solve the budget of the bloc, a project that was largely threatened due to a clash with the United Kingdom.
With over thousands of staging protests in European region last week that were staged against the austerity measures along with unemployment, transitioning dynamics in many other Euro nations could foreshadow newer conflict- an earlier than expected Italian election, a probably Cyprus bailout package and Spanish regional vote.
Spanish bonds plunged last week, pushing ten year yields right to the maximum level seen in 6 weeks, as per a report that showed how euro economy was pushed into third quarter of recession. Euro fell 1.7% in the current month against U.S. dollar, slipping 0.3% to reach $1.2743 on November 16th.